Home loan interest rates in India vary across lenders, starting from 7.35% p.a. Borrowers must assess EMI affordability, eligibility criteria, and scheme options before applying. Factors like credit score, income, and tenure play key roles in loan approval and repayment.
Navigating Home Loans in India: Interest Rates, EMI, Eligibility & Schemes Explained
Buying a home is a major milestone, and understanding the financial landscape is crucial. ThePrint’s latest report outlines the current home loan scenario in India, offering valuable insights into interest rates, EMI calculations, eligibility benchmarks, and available schemes.
Key Highlights from the Report:
Interest Rate Overview:
Rates vary by lender, borrower profile, and tenure.
Bajaj Housing Finance offers rates starting at 7.35% p.a., among the lowest in the market.
Public sector banks like SBI and PNB begin at 7.50% p.a., while private lenders like HDFC and ICICI Bank range from 7.70% to 7.90% p.a.
EMI Calculation Example:
For a ₹30 lakh loan at 9% interest over 20 years, the EMI is approximately ₹26,992/month.
At 10% interest, the EMI increases to ₹28,951/month—adding over ₹4 lakh in total interest across the tenure.
Eligibility Criteria:
Applicants must be aged 21–70 years at loan maturity.
A credit score of 700+ is preferred, though some lenders accept scores as low as 611.
Stable income, whether salaried or self-employed, is essential.
The property must have clear legal ownership and meet valuation standards.
Popular Loan Schemes:
Home Purchase Loan: For buying new or under-construction properties.
Home Extension Loan: For adding rooms or floors.
Home Improvement Loan: For renovations.
Balance Transfer & Top-Up: For shifting existing loans to lower rates and accessing additional funds.
Benchmarking System:
Most lenders follow the External Benchmark Lending Rate (EBLR) linked to the RBI Repo Rate, ensuring transparency and rate adjustments based on market conditions.
Borrower Tips:
Use EMI calculators to assess affordability.
Compare offers across multiple lenders.
Look out for festive discounts and processing fee waivers.
With competitive rates and flexible schemes, October 2025 is a promising time for prospective homeowners to secure financing tailored to their needs.
Source:
ThePrint